PRINCIPAL FINANCIAL GROUP INC Earnings Per Share Disclosure
23. Earnings Per Common Share
The computations of the basic and diluted per share amounts were as follows:
For the year ended December 31, |
| |||||||||
| 2025 | | 2024 | | 2023 |
| ||||
(in millions, except per share data) |
| |||||||||
Net income | $ | 1,255.5 |
| $ | 1,597.9 |
| $ | 670.1 | ||
Subtract: |
|
| ||||||||
Net income attributable to noncontrolling interest | 70.4 |
|
| 26.9 |
|
| 46.9 | |||
Total | $ | 1,185.1 |
| $ | 1,571.0 |
| $ | 623.2 | ||
Weighted-average shares outstanding: |
|
| ||||||||
Basic | 222.8 |
|
| 232.0 |
|
| 241.3 | |||
Dilutive effects: |
|
| ||||||||
Stock options | 0.6 |
|
| 0.8 |
|
| 0.9 | |||
Restricted stock units | 1.9 |
|
| 2.0 |
|
| 2.0 | |||
Performance share awards | 0.4 |
|
| 0.5 |
|
| 0.4 | |||
Diluted | 225.7 |
|
| 235.3 |
|
| 244.6 | |||
Net income per common share: |
|
| ||||||||
Basic | $ | 5.32 |
| $ | 6.77 |
| $ | 2.58 | ||
Diluted | $ | 5.25 |
| $ | 6.68 |
| $ | 2.55 | ||
The calculation of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023, excludes the incremental effect related to certain outstanding stock-based compensation grants due to their anti-dilutive effect. When a net loss is reported, our basic weighted-average shares are used to calculate diluted earnings per share, as dilutive shares would have an antidilutive effect and result in a lower loss per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.